The arrest of Telegram CEO Pavel Durov in France could be the first of many similar actions against tech executives resisting government demands, according to a report by Galaxy Research on Monday. The report suggests that Durov’s detention highlights escalating tensions between governments and platforms offering encrypted communication.
Durov was arrested at Le Bourget Airport over the weekend in what Galaxy describes as a significant move against a prominent tech figure. The report speculates that Telegram and Durov may have resisted takedown or information requests from European authorities, particularly from the French government. Telegram’s links to The Open Network (TON) blockchain are also under scrutiny, though the exact charges remain unclear.
“The extent to which the charges against Pavel involve TON, or Telegram’s integrations with TON, is not known,” wrote Alex Thorn, Galaxy’s head of firmwide research. TON, originally developed by Telegram, was later discontinued and picked up by independent developers. The blockchain’s native token, TON, saw a 14% drop following news of Durov’s arrest.
Thorn suggests that the charges could involve allegations of fraud or money laundering connected to TON’s integration with Telegram. The report notes that although TON has over 350 global validators, it remains uncertain how many are controlled by Telegram and how resilient the blockchain would be if governments attempt to disrupt it.
The incident raises broader concerns for the crypto community and encrypted communication platforms. According to Galaxy, the value of TON is heavily dependent on its integration with Telegram, and the platform’s decentralized nature will be key to its ability to withstand potential government actions.
Durov’s legal situation remains uncertain. French prosecutors indicated that he could be released as soon as Wednesday. However, betting platform Polymarket shows low confidence in a release this month, with participants wagering against his freedom before the end of September.
Galaxy’s report warns that this arrest could be a precursor to more government crackdowns on platforms that do not comply with regulatory demands, signaling a challenging road ahead for tech companies prioritizing user privacy and encryption.
